Mersana Therapeutics’ Earnings Call: Mixed Outlook with Clinical Gains

Mersana Therapeutics ((MRSN)) has held its Q1 earnings call. Read on for the main highlights of the call.

Mersana Therapeutics’ recent earnings call conveyed a mixed sentiment, reflecting both optimism and concern. The company showcased promising clinical advancements with Emi-Le in TNBC and extended its cash runway, yet faced challenges with a significant workforce reduction, declining collaboration revenue, and an increased net loss.

Positive Clinical Data for Emi-Le

Emi-Le demonstrated encouraging results, with a 29% Objective Response Rate (ORR) in patients with B7-H4 high tumors who had received four or fewer prior lines of therapy. The median Progression-Free Survival (PFS) was 16 weeks, and the median Overall Survival (OS) has not yet been reached, indicating potential efficacy in this patient group.

Strong Progress in TNBC Expansion Enrollment

The expansion cohort for TNBC has seen rapid enrollment progress in 2025, highlighting strong interest from both investigators and patients. This momentum reflects the potential impact of Emi-Le in treating this challenging form of breast cancer.

Enhanced Dosing Protocol

A new dosing regimen has been established, featuring 44.5 mg/m² on days 1 and 8, followed by 80 mg/m² every four weeks. This protocol has shown promising tumor reductions of at least 30% in evaluable B7-H4 high patients, suggesting improved treatment outcomes.

Financial Guidance and Cash Runway

Mersana ended the first quarter of 2025 with $102.3 million in cash, projecting a cash runway into mid-2026. This projection assumes no future collaborations or milestone payments, providing a financial cushion for ongoing operations.

Strategic Restructuring and Workforce Reduction

In a bid to extend its cash runway, Mersana announced a strategic restructuring, reducing its workforce by about 55% and halting internal pipeline development efforts. This move is aimed at focusing resources on key areas of development.

Decline in Collaboration Revenue

The company reported a decline in collaboration revenue, with Q1 2025 figures at $2.8 million, down from $9.2 million in Q1 2024. This decrease was primarily due to reduced revenue from collaborations with J&J and Merck KGaA.

Increased Net Loss

Mersana’s net loss for Q1 2025 was $24.1 million, an increase from $19.3 million in the same period in 2024. This rise in net loss is attributed to restructuring and other operational changes.

Forward-Looking Guidance

The company provided forward-looking guidance, emphasizing its strategic restructuring to extend the cash runway into mid-2026. Mersana plans to focus on breast cancer and Phase I dose escalation work for XMT-2056. The company anticipates sharing further clinical data in the second half of the year, particularly for patients with triple-negative breast cancer (TNBC) who have received at least one prior topo-1 ADC.

In conclusion, Mersana Therapeutics’ earnings call highlighted both promising advancements and significant challenges. While clinical progress and financial planning offer hope, the company must navigate workforce reductions and declining revenues. Investors and stakeholders will be keenly watching how Mersana balances these dynamics moving forward.